Coinbase Experience 2021: The Crypto Exchange Test

With over 20 million active users, Coinbase is certainly one of the best-known and most popular trading platforms for cryptocurrencies.

At first glance, the intuitive user interface seems to be perfectly suited for beginners. Coins can be acquired relatively easily without complicated detours.

Via Coinbase, you can obviously buy, sell and exchange coins of different cryptocurrencies easily and without any problems.

But is the crypto exchange really as good as one might think at the beginning?

We took a closer look at the offer, the fees, the deposit and withdrawal options as well as the customer service in a detailed test.

Can the exchange keep up with its competitors? Our test result will certainly surprise some potential traders and should therefore definitely be looked at before using the platform.

Our recommendation: Buy cryptos with eToro

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Coinbase: Advantages and disadvantages

Pros:

  • Easy and direct purchases of coins possible
  • Suitable for beginners
  • Large user base

Cons:

  • No good reviews of the platform online
  • Apparently poor support (also only in English)
  • Limited selection of tradable cryptocurrencies
  • Low number of deposit options

Like any other exchange, the platform has some advantages and disadvantages. The large user base is certainly useful. If you have problems, you can usually find solutions quickly online. You can also easily buy cryptocurrencies directly with your credit card.

However, the platform does not support a deposit via Paypal.

Unfortunately, not many digital coins are offered and you should check beforehand whether your favourite cryptos are supported at all. Furthermore, you can only make your deposits by credit card or bank transfer.

What is Coinbase?

Coinbase is the old lady among crypto exchanges. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam. The company is based in San Francisco and is funded by numerous well-known American venture capitalists.

The New York Stock Exchange (NYSE) is also among the investors.

Coinbase is now available in over 30 countries.


Coinbase updated Coinbase Prime to attract institutions

In addition to the normal Coinbase platform, which is aimed more at beginners, Coinbase users also have access to Coinbase Pro.
The Coinbase Pro trading platform is Coinbase's professional trading platform, which is aimed more at experienced traders. In return, the fees on Coinbase Pro are lower than on Coinbase.

Only after a precise analysis of the matter can one say with certainty whether Coinbase is a scam or serious. All the necessary information on trading via the website can be found in the following Coinbase test.

The story behind the exchange

Coinbase was founded in June 2012 by Brian Armstrong and Fred Ehream. Both still work for the company. Many large companies have also invested in Coinbase.

Among them you can find BBVA, SVAngel, IDG Ventures, USV and many more. The company has its headquarters in San Francisco, United States.

It is a licensed and supervised exchange for trading cryptocurrencies. There is not much more information online about the history and development of Coinbase.

behind the exchange

Coinbase experiences - The offer

The trading platform offers a variety of cryptocurrencies to buy and sell. Fiat currencies are used exclusively for the purchase of various coins and of course you can also have the money paid back to your bank account at the end.

The website is user-friendly and it is easy to find what you are looking for, even if you are a layman.

Transactions are equipped with simple step-by-step instructions so that even a beginner knows what to do.

Supposedly, you can reach the support 24/7/356 and the platform is used by 35 million users by now, according to their own statements.

Of course, Coinbase also offers its own application for mobile devices. It also contains a wallet for storing, sending and receiving cryptocurrencies.

A detailed overview of the best cryptowallets can be found here.

The Coinbase cryptocurrencies

An important point for many investors is the number of cryptocurrencies.

In the beginning, Coinbase was often criticised for only offering the most popular coins, but this has now changed!

With a range of 24 tradable cryptocurrencies, the platform does not have to hide.


Bitcoin
Ethereum
Ripple
Bitcoin Cash
Chainlink
Litecoin
Tezos
EOS


Stellar Lumens
USD Coin
Cosmos
Dash
Zcash
Ethereum Classic
Maker
Compound


Dai
Basic Attention Token
Algorand
Kyber Network
Ox
OMG Network
Augur
Orchid

Of course, there are some coins here that are not familiar to the new investor and therefore tend to cause confusion.

The social trader eToro strikes a good balance here; there, too, several different digital currencies can be acquired.

Our recommendation: Buy cryptos with eToro

Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades

eToro

Step by step guide Coinbase

Coinbase is a very interesting platform that you will probably only come across if you want to trade various cryptocurrencies.

It also offers direct purchase via a credit card, which should be interesting for users without cryptocurrencies.

Step 1: Registration

without cryptocurrencies

To register, all they need is a valid email address, a desired username and a password.

The latter must be at least 8 characters long and contain a number, a letter and a special character. In addition, the country and time zone can be set.

You then agree to the terms and conditions and click on register.

After a short time, you should receive a confirmation e-mail and verify your e-mail account via the link sent to you.

Apparently, no Kraken fees are charged for the account opening and for the provision, but this point may be changed in the future.

You can only choose between English and Japanese in the menu. Security is very important on the website, which is why one has to perform a 2FA authentication before every login.

This is a common security measure that can be found at almost all exchanges.

Of course, technical updates can always lead to external changes in the trading platform, which is why you should always follow the step-by-step instructions provided.

Step 2: Coinbase verification

After a short time, the future user will be sent a confirmation e-mail in which the account is to be verified.

Afterwards, you will be granted access to the trading platform and you should add two-factor authentication as an additional security measure.

Step 3: Linking the bank account

the bank account

As soon as you have logged in with your access data for the first time, you can link your bank account to your Coinbase account. The website guides the user through the process and then you can start trading directly.

Step 4: Buying Coins

bank details have

Once the bank details have been entered into the customer account, the user can select his or her favourite cryptocurrency and the desired amount.

Before you complete the purchase, you will see a detailed overview of the costs to be paid and the actual amount of coins on the right side of the screen.

Flat fees apply to purchases of less than €200 and are higher than usual. As a forward-looking investor, you should plan for them.

Step 5: The withdrawal of coins

naturally recommends

Now you choose a destination wallet for the transfer of the cryptocurrencies. Of course, you can also have your purchased cryptos paid out to a private wallet.

Coinbase naturally recommends its own wallet, which has also been rated very well by customers.

One can make purchases and sales, but also send money to friends and relatives. The use of a private wallet is also allowed and one finds simple instructions for linking on the website.

After confirming the transaction, one receives the purchased cryptos paid out within a few hours.

Our recommendation: Buy cryptos with eToro

Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades

eToro

Coinbase experience: The features

Coinbase seems to have adapted very well to global trading. Under the FAQs, one can find a precise listing of all deposit options for different regions.

Furthermore, the operators want to inspire beginners, as well as professional traders, for their platform.

There are simple step-by-step instructions for inexperienced traders and the trading platform is easy and intuitive to use.

The Coinbase App

Of course, Coinbase also offers a Coinbase app.

There is a version for Android users and one for iOS. The Android version has already been downloaded over five million times and rated over 150,000 times.

Users give the programme 4.3 out of a possible 5 points. That is a very high rating for an application from an exchange.

The Coinbase app is provided with regular updates and optimised. This shows that the operators are constantly trying to be up to date.

Furthermore, no special Android version is required to make the app available to as many users as possible.

The Coinbase app is a wallet and a trading platform at the same time.

You can also send and receive cryptocurrencies or have price signals sent to you.

What should always be noted is that only supported coins should be transferred to the wallet, as there is a risk that unsupported coins could be lost forever.

The iOS version was even rated with 4.7 out of 5 possible stars.

Here, an iOS version of 10.0 or higher is required and the programme can be used on an iPhone or iPad.

16 languages are supported and the application is, of course, free. This can of course change in due course and should always be checked before installation.


Coinbase App

Via both Coinbase applications you can send money to friends and relatives for free.

Purchases and sales are permitted from an amount of €15. Of course, every investor can also find the trading charts for the various cryptocurrencies here.

Since the withdrawal and deposit regulations can be very specific, one should be clear about the formalities from the outset.

If you are unclear, you should simply contact customer service and wait for their response before opening an account.

The website does not seem to support deposits of cryptocurrencies, but every user can withdraw their purchased coins into a private wallet.

Coinbase experience: The payment methods

Many investors want to be able to make deposits as quickly as possible and at the same time as cheaply as possible.

According to Coinbase's experience, there are differences according to region. European users can make a bank transfer, which usually takes one to three working days to be credited.

Alternatively, there is the possibility to make "3D Secure Card" purchases, which means nothing other than buying coins by credit card. 3D Secure Card is a special system from Visa and Mastercard to protect customer data.

You can buy cryptocurrencies immediately, but you cannot make deposits or withdrawals with a credit card. This way, you can fill your account with digital currencies and start trading right away.

Withdrawals can only be made to the same bank account from which the deposits were made. This step is prescribed by law and is intended to prevent money laundering.

Of course, you can also transfer your cryptocurrencies to the Coinbase app.

Private external wallets are supported at the moment and one has to follow the instructions under the FAQs. Of course, the operators want their Coinbase app to be used.

If one has opted for two-factor authentication to protect the account, one has to confirm the trade with the mobile device before making the deposit/withdrawal.

However, there is no minimum deposit amount. However, it is highly recommended to deposit more than €5 so that one does not only have Coinbase fees.

Coinbase payment methods for European users


Best for

Buy

Sell

Deposit

Payout

waiting period

SEPA transfer

Large amounts, ERO deposits, general withdrawals

✔

✔

1-3 workdays

3D Secure Card / Credit Card

instant crypto purchases

✔

no

immediate card withdrawal

Payouts

✔

no

Ideal / Immediately

Euro deposits, buy cryptos

✔

3-5 workdays

PayPal

only payout

✔

no

Our recommendation: Buy cryptos with eToro

Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades

eToro

Coinbase fees

For all purchases and sales, Coinbase charges a fee of 1.49 percent on the total amount - for instant purchases with the debit card, fees of 3.99 percent.

providers

Octopuses

Deposit

free of charge with SEPA transfer

fees

1.49% on the total amount

Transaction fees

Spreads of 0.50%

Payout

€ 0.15

Of course, not only other exchanges charge fees, Coinbase also charges a fee for certain services:


  • Using the Coinbase app is free and does not involve any costs.
    There are also no Coinbase fees when sending or receiving cryptocurrencies, but you do have to pay network fees.
  • A small part of the Coinbase fees is paid via bank transfer. 0.15 cents per transfer.
  • Sometimes the banks charge additional money for the execution, but you can ask for this beforehand.
  • The Coinbase platform is also financed by the spreads. These are minimal deteriorations in rates and the company keeps the difference for itself.
  • In addition, Coinbase charges fees for each transaction. Either it is a flat fee or a certain percentage of the trading volume.


The flat Coinbase fee is also payable, but is surprisingly low and is based on the trading volume:

Purchase volume

fee

<$ 10

$ 0.99

$ 10- $ 25

$ 1.49

$ 25- $ 50

$ 1.99

$ 50- $ 200

$ 2.99

Coinbase fees by payment method

In addition to the flat Coinbase fees, there are also transaction fees. For customers from Europe, this is 1.49% for standard buying and selling.

If the purchases are made by credit card, there are 3.99% Coinbase fees. As an investor, you should plan for these costs in advance.

Regular buying / selling

Instant purchase (credit card)

Bank Transfer (SEPA) deposit / withdrawal

1.49%

3.99%

Free / € 0.15

However, these Coinbase fees only apply if the percentage fees are higher than the flat fees.

In concrete terms, this means:

If a account is used to buy bitcoin for €100, the flat fee of €2.99 is charged. However, if the transaction is carried out with a credit card, Coinbase charges 3.99%.
This 3.99€ is taken as the Coinbase fee and deducted from the purchase value. If you want to buy Bitcoin for 100€, 104€ will be transferred to Coinbase.

When exchanging cryptocurrencies with each other, the operators charge 1% of the trading volume as a fee.

Of course, other countries have different fees for deposits and withdrawals. However, you can find all Coinbase fees listed on the website under FAQs.

There are no inactivity fees or other hidden costs that investors face, according to our Coinbase experience.

Coinbase experience: Security

One of the most important points is the security of a platform. Coinbase experiences should ensure that the money is well kept and that no unauthorised person gets access to their assets.

The first protection the customer gets is the regulation and monitoring of Coinbase by authorities. This prevents people from entrusting their money to fraudsters and thus losing it forever.

Furthermore, 98% of the assets are stored offline, so that hackers cannot gain access via the internet. The remaining 2% are online, but protected with special security systems. In addition, investments are protected against theft by insurance.

Users' banking information is additionally secured by AES-256 encryption. This is a security system often used by banks.

As a customer, you should always keep in mind that real Coinbase employees will not ask for your password or other login information. Such negative Coinbase experiences are unthinkable.

Furthermore, one never has to install an external login access for the support. If you are asked to do so, there is a very high probability that they are fraudsters who want to get their hands on the money you have saved.

Our recommendation: Buy cryptos with eToro

Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades

eToro

Coinbase experience: Customer service

In case of problems or difficulties, users often try to call the customer service directly.

However, our Coinbase experiences show: it is recommended to read through the FAQs first, as many operators offer step-by-step instructions for many difficulties. A search via common search engines can also lead to the hoped-for success.

However, if all attempts seem futile, Coinbase offers a telephone number for American and a telephone number for British customers. It is also possible to write an email or to seek help via the contact form.

Contact does not seem to be possible and one should contact the British support for the lowest possible costs. According to the website operators, support can be reached at any time of the day, all year round.

However, before the customer service can help, the user must first identify himself. If the investor is unable to do so, he will be rejected by the customer service.

In addition to the in-house blog with interesting content, it is also possible to contact the operator via Facebook or Twitter for common questions.

Kraken App

Is Coinbase reputable?

For additional protection, every investor can install two-factor authentication for an even more secure Coinbase experience.

This requires a mobile device and a special app from the store. After you have synchronised your mobile phone or tablet with your account, a random code is generated each time you try to log in.

You have to enter the sequence of numbers on the Coinbase website to access your account. Without the sequence of numbers, you cannot make any more purchases or sales. Of course, a code can only be used once and is invalid after 30 seconds.

As a user, you can also check all IP addresses from which login attempts were made. Furthermore, you should never save your access data on your computer.

If you lose your PC or it is stolen, the new "owners" will have access to your account.

Of course, you should be sensible and prudent with your login data. You should also not tell every stranger your account pin. You should have and use a certain amount of intelligence.

What is Coinbased

Is Coinbase a scam?

Is Coinbase a scam or is Coinbase reputable? You can give an answer to this question pretty quickly.

One simply refers to the licensing and monitoring by the authorities. This guarantees in any case that it cannot be a scam.

You can buy, sell and exchange coins of different cryptocurrencies via the platform. There are simple step-by-step instructions for this under the FAQs.

However, the reviews of existing Coinbase experiences do not seem to be that good. The application itself was rated all the better.

Another clue as to why Coinbase cannot be a scam is its users. The site says it has over 35 million satisfied users who conduct more than $150 billion worth of transactions in 102 countries.

The platform is also active in 42 countries and the fees are shown and explained in detail for each region.

Last but not least, the founders are real people, which is usually not the case with fraudulent sites. They often use fictitious names and pictures to make their site look more credible.

Coinbase experience: The conclusion

The Coinbase experience shows that it is a simply structured and intuitive trading platform for buying, selling and trading cryptocurrencies.

Direct purchases by credit card are also tolerated, which is not the case with many other exchanges.

However, the fees are probably the decisive weak point. They are likely to be significantly higher than with other providers. The site is available in eight different languages, but support is only available in English.

Some users complained in their Coinbase reviews that the customer service was actually unreachable.

There are, of course, applications for mobile devices that users have already downloaded several million times and rated very good.

The trading platform itself, on the other hand, does not seem to fare too well in user opinions.

Recommend the provider after the Coinbase test, but at the same time gives a significantly better alternative, where the offer, fees and support are significantly better:

Our recommendation: Buy cryptos with eToro

Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades

eToro

FAQ

What is Coinbase?

The provider is a crypto exchange where cryptocurrencies can be bought and sold.

Is it worth opening an account with Coinbase?

In our test, Coinbase was convincing. The diverse trading options and the excellent customer support attract many customers, most of whom are very satisfied with the provider.

How much money should I invest?

The amount of one's own investment should depend on one's own liquidity, as well as on the chosen cryptocurrency and one's own risk appetite. In general, you should never invest money that you actually need elsewhere, as profits can never be guaranteed.

How long does it take to withdraw money from Coinbase?

Here, too, the platform is convincing. Withdrawals are processed very quickly and, depending on the selected withdrawal method, are in your account within a few minutes to 2 business days.

What are the requirements for me to be able to trade successfully at Coinbase?

You should always know what you are investing in. Cryptocurrencies are highly volatile, so you should first get to know the chosen coin in detail. If you have the necessary know-how, as well as the occasional bit of luck, then nothing stands in the way of early profits.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.